The process of managing, building, and/or planning and establishing new uses for real estate is known as developing. Many interested with real estate development are referred to as ‘developers’. They buy land and then build or renovate properties, investing their time and money in the expectation of an investment gain.
Often real estate development is conducted as a public works programme, in which case it is not seen as an investment in the traditional context. The government is involved in the development of public services in order to help certain neighborhoods, get back unemployed citizens to work, or even even to retain a certain budget size.
To private owners, the development of real estate is a long-term, ambitious undertaking. The developer will assume that the newly built and approved real estate would have adequate value (and adequate demand) to pay for the energy, manpower and other resources committed to the project.
Development in urban communities is still regulated by neighborhood zoning regulations. This is because most city and county government planners are engaged in Planned Urban Development (PUD) which divides the use of real estate (commercial, residential, recreation, etc.) into different “zones.” In order to modify the use of land, developers typically need approval from city planners.
At the most general context, real estate development is essentially a combination of one’s work with the land in order to reach a predetermined goal. In a diverse global world, however, real estate production includes knowledge of finance, regulatory constraints, property taxes, industry and demand forecasts, and project management.